How To Start Trading On The Forex Market?
The foreign exchange market (also known as the Forex or FX market) is the largest financial market in the world with over 1.5 trillion dollars change hands every day.
Who is bigger than the U.S. stock and Treasury markets all combined!
Unlike other financial markets that operate in a centralized location (eg stock exchange), the foreign exchange market in the world is central. This is an electronic network of banks, financial institutions and individual traders, all involved in buying and selling currencies. Another important feature of the Forex market operates 24 hours per day, corresponding to the opening and closing of financial centers in countries around the world, starting each day in Sydney, then Tokyo, London and New York. At any time, anywhere, there are buyers and sellers, making the Forex market the most liquid market in the world.
Traditionally, access to the currency market has been made available only to banks and other large financial institutions.
With the technological advances of recent years, however, the foreign exchange market is now available for everyone from banks to money managers to individual traders trading retail accounts. The time involved in this exciting global market has never been better than now. Open an account and become an active player in the biggest market in the world.
The Forex market is very different than trading currencies on the futures market, much easier, than trading stocks or commodities.
If you are aware or not, and play a role in the Forex market. Just because you have money in your pocket makes you an investor in currencies, particularly the U.S. dollar. By holding U.S. dollars, which have not chosen to hold the currencies of other nations. Your purchases of stocks, bonds or other investments with the money deposited into your bank account, represent investments that are highly dependent on the integrity of the value of their currencies denominated in U.S. dollars.
Due to the change in value of U.S. dollar and the resulting fluctuations in exchange rates, your investments may change in value, affecting your overall financial situation. In this spirit, is not surprising that many investors have taken advantage of fluctuating exchange rates, the volatility of money market as a means to increase its capital.
Example: Suppose you had $ 1000 and bought Euros when the exchange rate was 1.50 euro per dollar. You will then have 1500 Euros. If the value of the euro against the U.S. dollar increased then you sell (exchange) your Euros for dollars and cons have more money than you started with.
Example:
You may receive the following:
EUR / USD 1.5000 means that the last transaction
One euro is worth $ 1.50 U.S..
The first currency (in this example, the euro) is known as the base currency and the second (/ USD) as the counter or quote currency.
The FOREX plays a vital role in the global economy and there is still a great need to exchange currency. International trade increases as technology and communication increases. While international trade exists, there will be a foreign exchange market. The FX market must exist for a country like Germany can sell products to the United States and be able to receive Euros in exchange for U.S. Dollar.
WARNING OF RISK:
Market risk Currency
The foreign exchange on margin is a very dangerous form of investment and is only suitable for individuals and institutions able to withstand potential losses arising therefrom. An account with a broker, you can exchange foreign currencies on a highly leveraged (up to 400 times more than necessary) equity.
The funds in an account that is trading at maximum leverage may be completely lost if the item (s) held in the account experiences even a variation of one per cent in value. Given the possibility of losing their entire investment, speculation in the foreign exchange market should only be undertaken with funding from venture capital in case of loss, not significantly affect the investors financial well-being.
Who is bigger than the U.S. stock and Treasury markets all combined!
Unlike other financial markets that operate in a centralized location (eg stock exchange), the foreign exchange market in the world is central. This is an electronic network of banks, financial institutions and individual traders, all involved in buying and selling currencies. Another important feature of the Forex market operates 24 hours per day, corresponding to the opening and closing of financial centers in countries around the world, starting each day in Sydney, then Tokyo, London and New York. At any time, anywhere, there are buyers and sellers, making the Forex market the most liquid market in the world.
Traditionally, access to the currency market has been made available only to banks and other large financial institutions.
With the technological advances of recent years, however, the foreign exchange market is now available for everyone from banks to money managers to individual traders trading retail accounts. The time involved in this exciting global market has never been better than now. Open an account and become an active player in the biggest market in the world.
The Forex market is very different than trading currencies on the futures market, much easier, than trading stocks or commodities.
If you are aware or not, and play a role in the Forex market. Just because you have money in your pocket makes you an investor in currencies, particularly the U.S. dollar. By holding U.S. dollars, which have not chosen to hold the currencies of other nations. Your purchases of stocks, bonds or other investments with the money deposited into your bank account, represent investments that are highly dependent on the integrity of the value of their currencies denominated in U.S. dollars.
Due to the change in value of U.S. dollar and the resulting fluctuations in exchange rates, your investments may change in value, affecting your overall financial situation. In this spirit, is not surprising that many investors have taken advantage of fluctuating exchange rates, the volatility of money market as a means to increase its capital.
Example: Suppose you had $ 1000 and bought Euros when the exchange rate was 1.50 euro per dollar. You will then have 1500 Euros. If the value of the euro against the U.S. dollar increased then you sell (exchange) your Euros for dollars and cons have more money than you started with.
Example:
You may receive the following:
EUR / USD 1.5000 means that the last transaction
One euro is worth $ 1.50 U.S..
The first currency (in this example, the euro) is known as the base currency and the second (/ USD) as the counter or quote currency.
The FOREX plays a vital role in the global economy and there is still a great need to exchange currency. International trade increases as technology and communication increases. While international trade exists, there will be a foreign exchange market. The FX market must exist for a country like Germany can sell products to the United States and be able to receive Euros in exchange for U.S. Dollar.
WARNING OF RISK:
Market risk Currency
The foreign exchange on margin is a very dangerous form of investment and is only suitable for individuals and institutions able to withstand potential losses arising therefrom. An account with a broker, you can exchange foreign currencies on a highly leveraged (up to 400 times more than necessary) equity.
The funds in an account that is trading at maximum leverage may be completely lost if the item (s) held in the account experiences even a variation of one per cent in value. Given the possibility of losing their entire investment, speculation in the foreign exchange market should only be undertaken with funding from venture capital in case of loss, not significantly affect the investors financial well-being.